Trading Plan for Dec. 22, 2010

Current Long Positions (stop-losses in parentheses): CX (10.49), AIT (31.49), NTRI (20.64), SNE (35.03), MENT (11.74), AMZN (177.15), F (16.33)

Current Short Positions (stop-losses in parentheses): None

BIAS: 47% Long

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), GDP (8:30am), Corporate Profits (8:30am), Existing Home Sales (8:30am), FHFA House Price Index (10am), EIA Petroleum Status Report (10:30am)

My Observations and What to Expect:

• Futures are are flat heading into the open. 
• Asian and European markets are trading flat/mixed.
• Volume  will continue to dramatically fall off in the days ahead as  Christmas is only days away. Friday the market is closed. 
• The market continues to make new rally-highs hitting 1254 yesterday, and is quickly approaching a resistance zone in the 1260’s. 
• The market’s rally continues to be very healthy and orderly, creating an environment for consistent and steady gains, with pullbacks that are contained and typically bought on the dip. 
• The lows from 12/15 and 12/16 represent, in my opinion, the “higher-lows” in this recent market rally, and a break below them at 1232, would significantly stall this market’s upward progression and potentially invite a new trend to the downside. 
• The S&P continues to follow the 10-day moving average higher, which at this point should also be considered a barometer on the health of this current leg-up in the market.
• The next target for this market is to reach into the 1270’s
• Below 1227, should we break it, the key support level for the S&P would become 1216 – the lows of previous consolidation.
• For the bears – A sell-off significant enough that at least brings the market back to its current trendline. A break of the trendline would hamper the bull’s efforts.
• For the bulls – Now that 1247 has been broken, begin pushing price levels to new resistance levels in the 1260’s on the S&P.

Here Are The Actions I Will Be Taking:

• Don’t expect to add new positions to the portfolio today, but will be pointing out numerous setups though. 
• I don’t want to be too heavily long over the Christmas and New Year’s holidays – instead I want to focus on current positions with managing and reducing my portfolio exposure. 
• Stop losses in CX, AIT and SNE have been tightened. 
• Finally have a long position in Ford (F) at 16.92.
• Sold half my position in CX for a 7.8% gain. 
• NTRI will continue to be on the ‘chopping-block’ for stocks that I may close out today, if it doesn’t give me a valid reason to the contrary.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.